Funding News
Entellus Industries Raises $5.5 Million to Scale Rare Earth Metal and Alloy Manufacturing in India
With this expansion, the company expects to support a production capacity of approximately 2,000 tonnes of magnets per year, a significant step toward reducing India’s dependence on imported rare earth materials.
Entellus Industries, India’s first rare earth metals and alloy manufacturing company, has raised $5.5 million in its second round of funding to accelerate domestic production of critical materials used in electric vehicles, renewable energy, defence, and advanced electronics.
The round was led by ZeroW, a boutique investment firm focused on deep-tech and emerging sectors and backed by the Mekapati Family Office, promoters of infrastructure major KMC Group. ValPro acted as transaction adviser. The funding follows Entellus’ earlier $12 million raise from Social Capital, which enabled the company to establish its initial manufacturing operations in Tamil Nadu.
Expanding India’s Rare Earth Manufacturing Capacity
The latest capital infusion led by ZeroW will be deployed primarily toward capital expenditure, allowing Entellus to expand into sintered rare earth alloys and commercialise its existing product portfolio. With this expansion, the company expects to support a production capacity of approximately 2,000 tonnes of magnets per year, a significant step toward reducing India’s dependence on imported rare earth materials.
Entellus currently manufactures NdPr (neodymium-praseodymium) metal, bonded powders, and strip-cast alloys—critical inputs for permanent magnets used across high-growth sectors such as electric mobility, wind energy, aerospace, and consumer electronics.
Building a Strategic Advantage for India
Commenting on the fundraise, Simha Kumar, CEO of Entellus Industries, said that establishing verifiable technical capabilities in rare earth manufacturing has been a major challenge globally. “We are the first to achieve this at scale in India. We want to use this advantage to make India a truly global hub for rare earth magnet manufacturing,” he said.
The investment comes at a time when governments and industries worldwide are reassessing supply chain vulnerabilities around rare earths—materials dominated by a small number of global producers. India’s renewed emphasis on domestic manufacturing under initiatives such as Make in India has further sharpened focus on building local capacity in strategic materials.
Investor Confidence in Deep-Tech Manufacturing
For ZeroW, the investment reflects growing confidence in India’s ability to build commercially viable, private-sector manufacturing capacity in critical and complex materials. Rare earth metals and magnets are considered essential for the global energy transition, and demand is expected to surge as electric vehicles, renewable energy infrastructure, and defence technologies scale rapidly.
By focusing on globally benchmarked processes, sustainability, and operational discipline, Entellus aims to position itself as a reliable supplier to both Indian and international markets.
Founded in 2022, Entellus Industries has moved quickly to establish itself in a sector traditionally dominated by overseas players. Its manufacturing roadmap aligns closely with India’s long-term ambitions in clean energy, mobility, and strategic autonomy.
With fresh funding in place and expansion plans underway, Entellus is positioning itself at the intersection of industrial policy, deep technology, and global supply chain realignment—signalling a pivotal moment for India’s rare earth and magnet manufacturing ecosystem.
